Youngone does not sell apparel under its own brand; instead it is an OEM/ODM manufacturer that takes orders from global outdoor and sports brands such as The North Face, lululemon, Patagonia, and Arc'teryx, designing and producing garments for export. Directly operating large sewing plants in Bangladesh and Vietnam is its core competitive edge, and it also holds the Swiss bicycle brand SCOTT as a subsidiary. The May quarterly report confirmed a +113% improvement in Q1 net profit, the March business report and regular shareholders' meeting fixed a cash dividend of ₩2,100 per share, and June brought disclosures of a debt guarantee for an affiliate and a governance report. What stands out lately is that on top of a solid core business, with a 12% ROE, low debt, and ample liquidity, it trades at 6.7x on last year's earnings and about 5.5x reflecting this year's earnings — a clear undervalued character; yet a large share of revenue is dollar exports, so earnings swing with exchange rates and global consumer conditions, and a slow recovery in the SCOTT segment's market weighs on company-wide margins for the time being.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 15.5% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 10.4% higher than a year earlier.
- ROE is 12.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 12.7%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Youngone Holdings 50.52% (corporate)
Controlling bloc incl. related parties 50.75%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Youngone is not a company that sells apparel under its own brand; it is an OEM/ODM manufacturer that takes orders from global outdoor and sports brands and designs and produces garments on their behalf for export.
- High-performance brands such as The North Face, lululemon, Patagonia, and Arc'teryx are its main customers, and directly operating large overseas sewing plants in places like Bangladesh and Vietnam is its core competitive edge.
- On top of this it holds the Swiss premium bicycle and sports brand SCOTT as a subsidiary, running a bicycle and gear business as well.
- Revenue thus splits broadly into two pillars — an apparel OEM segment and a SCOTT bicycle segment — with most of the profit coming from the steadily running apparel OEM.
- The latest close is ₩82,400 and market cap is ₩3.7 trillion.
- The price sits above its 20-day line (₩78,290) and above its 60-day line (₩81,165).
- Being above both its short- and mid-term moving averages, the trend is on the sound side.
- RSI (an auxiliary gauge weighing the strength of gains against losses over the past 14 days on a 0-100 scale) is 54.9, a neutral level.
- The one-month change is +5.5%, the three-month change is +1.1%, and the position versus the 52-week high is -15.9%.
- Relative strength versus the KOSPI is 41 (1-99, recent one-year return against the index recency-weighted; higher means stronger than the market).
- That places it in roughly the top 60% of all stocks by strength.
- Over the past three months it lagged the index by 19.8%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's earnings the price represents) is 7.42x and the P/B (how many times book equity the price represents) is 0.89x, low by either the earnings or the asset measure.
- ROE (how much is earned in a year per unit of equity) is 12.0%, clearly higher than peer apparel exporters, so it is putting capital to work efficiently.
- With an operating margin of 12.7% and a net margin of 12.1%, profitability is good for a manufacturing and exporting firm, and the balance sheet is very solid — a debt ratio (debt versus equity) of 39%, a current ratio of 388%, and interest coverage of 17x.
- The dividend yield is 2.8% (₩2,100 per share) and the payout ratio (dividends as a share of net profit) is about 19%, so there is still room.
- That said, the P/E of 6.7x shown in the table is based on last year's (2025) confirmed earnings, so in a phase where this year's earnings are rising it needs to be reviewed on forward-looking earnings.
- 2025 revenue rose 15.5% year over year to ₩4.06 trillion, and operating profit surged 63% to ₩514.4 billion.
- Over five years net profit peaked at ₩674.5 billion in 2022, was then pressed down to ₩427.1 billion in 2024, and climbed back to ₩492.3 billion in 2025 — a recovery phase.
- In Q1 2026, revenue was ₩895.8 billion (+10.4%), operating profit ₩120.4 billion (+46.3%), and net profit ₩149.7 billion, up 113% year over year.
- The core of the growth is the apparel OEM segment that generates most of the profit, where orders for premium brands such as Arc'teryx have risen sharply and dollar-based orders are growing firmly.
- The bicycle (SCOTT) segment grew revenue but, with the bicycle market recovering slowly, margin improvement is limited.
- This year, with OEM profit improvement and firm financial income continuing, full-year net profit is expected to top last year's (₩492.3 billion) and reach around ₩600 billion.
- In that case the current price is about 5.5x on this year's earnings — actually lower than on last year's earnings.
- Recent disclosures are mostly periodic in nature.
- The May quarterly report confirmed the Q1 earnings improvement (net profit +113%), and the March business report and regular shareholders' meeting fixed a cash dividend of ₩2,100 per share.
- June brought a decision on a debt guarantee for an affiliate and a corporate governance report; the debt guarantee is customary support for subsidiary operations.
- Rather than major order or investment disclosures, the substantive things to watch are the OEM order flow confirmed by quarterly results and the dividend policy.
- From an observational view, this company pairs a solid core business — global premium outdoor OEM — with a high ROE (12%), low debt, and ample liquidity, yet its P/E and P/B are priced low relative to peers.
- In particular, even 6.7x on last year's earnings is low, and reflecting this year's earnings growth it falls to about 5.5x, a clear undervalued character.
- Two points to note.
- First, a large share of revenue is dollar exports, so earnings can swing with exchange rates and global consumer conditions.
- Second, the SCOTT (bicycle) segment's market is recovering slowly, so for the time being it weighs on rather than lifts company-wide margins.
- In sum, a structure that is strong when OEM orders are firm and exchange rates are favorable, and weaker when a global consumer slowdown coincides with a soft bicycle market.
🔎 Valuation vs peers Undervalued
Compared with other apparel-export manufacturers, based on the apparel OEM/ODM and sporting-goods business structure of taking global brands' orders to make garments for export.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hansae | 6.29x | 0.49x | 7.79% |
| Youngone Holdings | 6.62x | 0.81x | 12.19% |
| Handsome | 10.43x | 0.34x | 3.22% |
At a P/E of 6.7x and P/B of 0.80x, it is similar to or slightly above comparable apparel OEM exporters (Hansae P/E 5.7, P/B 0.45). But Youngone's ROE of 12.0% is distinctly higher than Hansae (7.8%) and Handsome (3.2%), so the slightly higher P/B is explained by a profitability premium. The P/E of 6.7x shown in the table is based on last year's (2025) confirmed earnings; with Q1 net profit already up 113% year over year and OEM orders firm, full-year earnings look set to top last year, so on this year's earnings it falls to about 5.5x. Given the high ROE and solid balance sheet, the price is judged to be set low relative to earnings.
Price history Close · MA20 · MA60
The latest close is ₩82,400 and the market capitalization is ₩3.7 trillion. The price sits above its 20-day moving average (₩78,290) and above its 60-day moving average (₩81,165). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.9, a neutral level. The one-month change is +5.5%, the three-month change is +1.1%, and the position relative to the 52-week high is -15.9%. Relative strength versus the KOSPI is 41 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 40% of all stocks. Over the past three months it lagged the index by 19.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -19.76% / 6M -37.94% / 12M -42.74%
Key metrics vs sector median
Valuation
The P/E of 7.42x is below the sector median (9.68x). The P/B of 0.89x is in line with the sector median (0.80x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.214x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 12.0%, above the sector average (7.0%). The operating margin is 12.7%. The debt ratio is 39.4%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.4B | $2.3B | $2.7B | +15.51% ↑ faster |
| Operating profit | $422.3M | $209.2M | $341.0M | +63.01% ↑ faster |
| Net profit | $342.0M | $283.0M | $326.3M | +15.27% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.9B | $2.6B | $2.4B | $2.3B | $2.7B |
| Operating profit | $293.3M | $545.5M | $422.3M | $209.2M | $341.0M |
| Net profit | $197.6M | $447.1M | $342.0M | $283.0M | $326.3M |
| Revenue CAGR | 4-yr avg 9.83% | ||||
Revenue rose 15.5% year over year (2023 ₩3.6 trillion → 2024 ₩3.5 trillion → 2025 ₩4.1 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 63.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.8%. The two-year revenue CAGR is 6.2%. In the most recent quarter (Q1 2026), revenue was 10.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 12.0% points to solid profitability.
- Revenue grew 15.5% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-14EarningsQ1 2026 quarterly report. Consolidated revenue ₩895.8 billion (+10.4% year over year), operating profit ₩120.4 billion (+46.3%), net profit ₩149.7 billion (+113.2%), with earnings greatly improved.A short-term positive that lifts this year's earnings baseline, as apparel-OEM profit improvement and financial income overlap. Source
- 2026-03-27DividendThe regular shareholders' meeting confirmed a fiscal-2025 year-end dividend (₩2,100 per share, payout ratio about 19%).Maintains stable shareholder returns with a dividend yield of about 2.8%. With a low share of dividends to net profit, additional room remains. Source
- 2026-06-09FilingDecision on a debt guarantee for a third party (affiliate). A customary guarantee disclosure to support subsidiary operations and funding.For the purpose of supporting a within-group subsidiary; with the parent's balance sheet solid (debt ratio 39%, current ratio 388%), the burden is limited. Source
- 2026-06-01FilingCorporate governance report disclosed. Periodically discloses governance status such as board composition and shareholder returns.No direct earnings impact, but periodic material for checking governance and shareholder-return transparency. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-09Disclosure
- 2026-06-01Corporate governance report
- 2026-05-14PeriodicQuarterly report
- 2026-04-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Disclosure
- 2026-03-12Shareholders' meeting notice
- 2026-03-11Amended filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.